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HIGHLIGHTS
- The average time charter equivalent (TCE) rate was $44,990/day on the basis
of IFRS 15 accounting standard and $40,143/day on discharge to discharge
basis, compared to $51,047/day and $51,358/day, respectively, in Q4 2019.
- Daily operating expenses (OPEX) were $8,650/day, compared to $7,983/day in
2019.
- A&G expenses were $1,042/day, down from $1,082/day in 2019.
- In February the company entered into a $15 million credit facility to part
finance the scrubber installments for our fleet.
- In March, the company made a dividend payment of $0.3/share or $19.1 million
to the shareholders.
- At the time of this report, five ships have completed special survey and
four scrubbers have been installed. Further four ships are due for drydock
during the remainder of 2020.
The Covid-19 virus outbreak has had significant impact on global trade and in
the capital markets. For the VLGC market, we have in Q1 seen temporary
reductions in LPG demand in Asia and Europe, while travel bans, quarantines and
lock downs has led to delays at shipyards and lower global fleet efficiency.
While the latter has led to lower fleet capacity in support of the freight
market, it has led to lower returns for those impacted by the delays.
The freight market has remained at firm levels in Q1, with disruptions from IMO
2020 implementation and US exports being the key contributors. However, the
freight market volatility has returned as LPG trading fundamentals have become
less attractive. US Gulf and USEC VLGC exports were 8.9 million tons in Q1
2020, up from 8.6 million tons in Q4 2019 and 7.0 million in Q1 2019. US Gulf
and USEC recorded 67 monthly VLGC cargoes in Q1 2020, compared to 62 cargoes in
Q4 2019 and 52 cargoes in Q1 2019.
Middle East VLGC exports totaled 7.6 million tons in Q1 2020, down from 7.7
million tons in Q4 2019 and 7.8 million in Q1 2019. The increase in oil
production impacted the spot market activity in the Middle East in March/April
but has since then fallen back due to production cuts. Middle East exported on
average 57 cargoes per month in Q1, down from 59 in both Q4 2019 and Q1 2019.
The global fleet totaled 294 ships by end April 2020, with an orderbook of 33
ships (11%). Ten ships are due for delivery for the remainder of 2020, 19 ships
are due for delivery in 2021 and 4 ships due for delivery in 2022. Shipbrokers
are expecting slippage in the orderbook due to delays in delivery of key ship
components to shipyards following the Covid-19 outbreak.
PRESENTATION AND WEBCAST
Avance Gas will host an audio webcast and conference call to discuss the
companyâs results for the period ended 31 March 2020 on Thursday, 28 May 2020,
at 14:00 CET. There will be a Q&A session following the presentation.
The presentation and webcast will be hosted by:
- Mr. Peder C. G. Simonsen - Interim CEO and CFO
The presentation will also be available via audio webcast, which can be accessed
at Avance Gasâ website www.avancegas.com (http://www.avancegas.com). Dial in
details are +44 (0)2071 928 000 (UK and International), +1 631-510-7495 (US) or
+47 23 96 02 64 (Norway). Please quote the passcode: 9088721. Phone lines will
open 10 minutes before the conference call.
For further queries, please contact:
Peder C. G. Simonsen, Interim CEO and CFO
Tel: +47 22 00 48 15
ABOUT AVANCE GAS
Avance Gas Holding Ltd operates in the global market for transportation of
liquefied petroleum gas (LPG). The company is one of the worldâs leading owners
and operators of very large gas carriers (VLGCs), operating a fleet of 14 modern
ships. For more information about Avance Gas, please visit: www.avancegas.com
(http://www.avancegas.com).
This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act
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